Everton deducted two points for second breach of Premier League financial rules

Everton have been deducted two points for a second breach of Premier League financial rules.

Profit and sustainability rules (PSR) permit clubs to lose £105m over three years and an independent commission found Everton breached that by £16.6m for the three-year period to 2022-23.

They drop one place to 16th and are now two points above the relegation zone.

The Toffees had a 10-point deduction reduced to six on appeal in February for the three-year period to 2021-22.

Everton say the club will appeal against the decision.

The Merseyside club could yet face a further points deduction in relation to interest costs associated with the building of the club's new stadium at Bramley-Moore Dock, though that issue is unlikely to be resolved before the end of the season.

In its written reasons the independent commission said the Premier League had asked for a five-point deduction for the club.

The commission decided that any breach of PSR justifies a three-point deduction, with an additional two points because Everton's breach of £16.6m - 15.8% above the £105m threshold - is deemed significant.

However, the commission accepted Everton's arguments for mitigation in relation to the fact the club has:

Already been deducted points this season
Suffered a loss of revenue because of the suspension of a sponsorship deal with Russian company USM
Made an early admission of guilt
The commission concluded that the fact Everton have already been punished this season "for losses in years which overlap with the years at issue in these proceedings" merits a two-point reduction in punishment, with a further point for the loss of sponsorship revenue and early admission of guilt.

It also said that the club and league remain in dispute over costs related to the new stadium - with the Premier League saying these costs should count as PSR losses, while Everton argue they should be excluded and have capitalised them on their latest audited accounts.

The same independent commission will meet to decide the issue at a later date and, if it agrees with the Premier League, could issue further punishment.

However, the commission said this issue cannot be dealt with using the expediated PSR process introduced this season so is unlikely to be resolved before the end of the campaign.

An Everton statement read: "While the club's position has been that no further sanction was appropriate, the club is pleased to see that the commission has given credit to the majority of the issues raised by the club, including the concept of double punishment, the significant mitigating circumstances facing the club due to the war in Ukraine, and the high level of co-operation and early admission of the club's breach."

The Toffees added that the club is "extremely concerned" at the "inconsistency" of the punishments, with four different commissions issuing four different points deductions this season.

The Premier League said the independent commission "reaffirmed the principle that any breach of the PSRs is significant and justifies, indeed requires, a sporting sanction".

Nottingham Forest are the other Premier League club to have been charged with PSR breaches this season and were docked four points in March, although they have lodged an appeal.

Championship club Leicester have also been charged by the Premier League for allegedly breaking spending rules during their last three seasons in the top flight.

There is no guarantee that Everton's appeal will be heard before the final games of the Premier League season on 19 May when Everton travel to Arsenal.

The 2023-24 season technically remains 'live' until the annual general meeting in June when relegated clubs transfer their certificates and 24 May has been selected as a 'backstop date' for the appeals process to be concluded.

Everton in transition
This second deduction comes at a time of significant uncertainty at Everton.

The club released their accounts covering the 2022-23 season on 31 March, reporting financial losses of £89.1m.

In September, owner Farhad Moshiri agreed to sell his 94% stake in the club to American investment fund 777 Partners. The takeover is going through the regulatory processes and the club is still awaiting for that to be approved by the Premier League.

Everton are also in the process of building a new stadium on the banks of the River Mersey at Bramley-Moore Dock, which is due to open in late 2024.

Giving evidence to the independent commission, Kevin Thelwell, Everton's director of football, said the club was already changing and moving away from its previous business model towards a more sustainable recruitment strategy, but added that "it's a big old ship to turn round".

Everyone needs consistency & transparency. Points deductions shouldn’t be negotiable, neither should individual mitigating circumstances.

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Originally Posted by Des Parrot

Everyone needs consistency & transparency. Points deductions shouldn’t be negotiable, neither should individual mitigating circumstances.

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This all seems a bit of a shit show in terms of how it is administered and might be an interesting summer of appeals??

We don't want them down they would smash this league.

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Originally Posted by North Cardiff Blue

We don't want them down they would smash this league.

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Everton would probably hold a fire sale if they were relegated. I'd love one of the 'big boys' to end up in the Championship for a season for at least

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Originally Posted by Nobody's Rep

This all seems a bit of a shit show in terms of how it is administered and might be an interesting summer of appeals??

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Premier League hardly doing their case against having an external regulator any favours with how they've handled points deductions

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Originally Posted by Des Parrot

Everyone needs consistency & transparency. Points deductions shouldn’t be negotiable, neither should individual mitigating circumstances.

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To be fair, loss of a sponsor due to sanctions against Russia wasn’t really in Everton's control. Penalised twice for losses that overlap seems a bit odd too.
For me, it's the PSR that need sorting, because you are right, it's becoming farcical.

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Originally Posted by North Cardiff Blue

We don't want them down they would smash this league.

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Most of their players won’t have relegation clauses or the desire to play in the Championship. Their current financial situation and construction of the new stadium will hinder them a lot.

Trying to include the new stadium costs seems to run contrary to how UEFA view these things. For example Barcelona are more than £500 million in debt according to some sources in addition to the €1.2 billion costs of their new stadium. No penalties….to date

All these noughts make what the Premiership is doing farcical by comparison imo

just enough punishment to look like that have have punished them, but not enough to actually make any difference ( as the bottom 2 are down, they should get enough points from remaining games to be safe, 2 X 6 pointers with Forrest and Luton ( if they lose them 2 it could be squeaky bum time ), 2 games against he doomed bottom 2 , though they do have Chelsea, Liverpool and Arsenal, you wouldnt want to play arsenal last game of the season wanting anything

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Originally Posted by blue matt

just enough punishment to look like that have have punished them, but not enough to actually make any difference ( as the bottom 2 are down, they should get enough points from remaining games to be safe, 2 X 6 pointers with Forrest and Luton ( if they lose them 2 it could be squeaky bum time ), 2 games against he doomed bottom 2 , though they do have Chelsea, Liverpool and Arsenal, you wouldnt want to play arsenal last game of the season wanting anything

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I agree, not only are you asking for a real collapse from Everton, but you're also relying on Luton picking up points. Even if you went with the lowest of points expectations for Everton it's a minimum of 4... Luton would need 7 to stay up considering GD.

Hard to see Luton picking up 7, particularly as the pressure mounts. That collapse away at Bournemouth undid any real prospect of them staying up.

The Premier League powers that be have been as passive/aggressive as possible to Everton. A punishment, yes, but never enough to condemn them to the unthinkable. They are one of the chosen few in the top division.

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Originally Posted by Der Kaiser

I agree, not only are you asking for a real collapse from Everton, but you're also relying on Luton picking up points. Even if you went with the lowest of points expectations for Everton it's a minimum of 4... Luton would need 7 to stay up considering GD.

Hard to see Luton picking up 7, particularly as the pressure mounts. That collapse away at Bournemouth undid any real prospect of them staying up.

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Relying on Luton and Forest to pick up points

Luton are level on points with Forest, I don't think their prospects of staying up are as dire as you're suggesting. If Luton are still 2 points off Everton going into their home game against them next month then it's very much game on.

And STILL they haven't done anything to Citeh

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Originally Posted by bobh

And STILL they haven't done anything to Citeh

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Will we ever see them punished ? ?

when they decide to join the European / world super league and leave, the FA might conclude the investigations and dock them points, but as they have left, no-one to punish, the "superstar team" ( that will takes its place ) will be a different beast, so the punishment doesnt effect them

Man City’s hierarchy have regenerated a derelict part of Manchester, created many jobs but more importantly they’ve really annoyed the likes of Man Utd, Liverpool & Chelsea. What’s not to like?:hehe:

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Originally Posted by Canton Kev

Most of their players won’t have relegation clauses or the desire to play in the Championship. Their current financial situation and construction of the new stadium will hinder them a lot.

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Yes we were saying the same about Leicester who were a lot weaker, I don't think they will come down anyway.

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Originally Posted by North Cardiff Blue

We don't want them down they would smash this league.

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yeah ok :hehe:

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Originally Posted by North Cardiff Blue

Yes we were saying the same about Leicester who were a lot weaker, I don't think they will come down anyway.

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Leicester a lot weaker? Their 3 previous fimishes before coming down last season were 8th, 5th and 5th. They'd recently won the FA Cup and done ok in Europe, it was a real shock that they were relegated. Everton have been nowhere near that

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Originally Posted by Eddie Johnson

To be fair, loss of a sponsor due to sanctions against Russia wasn’t really in Everton's control. Penalised twice for losses that overlap seems a bit odd too.
For me, it's the PSR that need sorting, because you are right, it's becoming farcical.

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They have been super "lucky" to receive both sets of deductions in the one season where they should stay up regardless.
Other seasons either or both deductions would have relegated them but I suspect the premier League would prefer them to stay up

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Originally Posted by bobh

And STILL they haven't done anything to Citeh

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City won't be found guilty of very much at all in my humble opinion. Nothing to do with cost of lawyers they use more an actual piss poor case the prosecutor has

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Originally Posted by City123

Leicester a lot weaker? Their 3 previous fimishes before coming down last season were 8th, 5th and 5th. They'd recently won the FA Cup and done ok in Europe, it was a real shock that they were relegated. Everton have been nowhere near that

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Dyche would p!ss this league with his squad and new additions.

We need the three Championship cannon fodder teams down, that will make the league a bit more even.

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Originally Posted by North Cardiff Blue

Dyche would p!ss this league with his squad and new additions.

We need the three Championship cannon fodder teams down, that will make the league a bit more even.

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Everton may well piss the league if they came down, but they certainly aren't a lot stronger than Leicester when they came down

Leicester also lost key players and are still leading a very strong promotion race. Maddison, Barnes, Tielemans, Perez, Soyuncu amongst others left this season. Everton would lose their better players as well

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Originally Posted by City123

Everton may well piss the league if they came down, but they certainly aren't a lot stronger than Leicester when they came down

Leicester also lost key players and are still leading a very strong promotion race. Maddison, Barnes, Tielemans, Perez, Soyuncu amongst others left this season. Everton would lose their better players as well

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Hopefully they stay up and we don't find out :thumbup:

We have virtually no chance of troubling the automatic promotion places and a play off place is also unlikely so I dont see what Everton pissing the league would in anyway disadvantage us.

Im not convinced they would anyway. Villa struggled first season down no guarantees theyd bounce straight back.